Considering the standard and cost of living of workers, the inflation, and the ongoing review of minimum wages, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged US apparel and footwear brands and retailers to adjust price level rationally.
BGMEA President Faruque Hassan in a letter requested American Apparel & Footwear Association President and CEO Stephen Lamar on Thursday, said a press release.
“We expect fair price and ethical sourcing from our valued buyers,” Faruque said in the letter. “I would sincerely request you to kindly pursue the US brands and retailers to consider a rational price upcharge for the orders to be produced from December 1 this year and onwards.”
This is important for a smoother transition to a new wage scale, the BGMEA president added.
“At our end, we are working relentlessly to improve the skill and efficiency level of our workers. I think such initiatives should have broader collaboration so that in one hand workers become more empowered and add more values to their factories,” he said.
Earlier, Lamar sent a letter to Prime Minister Sheikh Hasina and a copy of the letter to the BGMEA president where he expressed concerns and observations about apparel industry, especially about the workers in Bangladesh.
Dramatic changes have taken place in the last few years in the area of workplace safety and ensuring workers’ rights, the BGMEA president said, adding that the industry showed the zero tolerance and committed efforts and investments to remediate and ensure complete safety in workplace.
“The Better Work Bangladesh (BWB) has also gained momentum covering 437 RMG factories and around 1.25 million workers. To prepare ourselves to adapt with emerging due diligence, the BGMEA has established a Responsible Business Hub (RBH) on its premises to build capacities of our manufacturers. These are some of our humble efforts, yet a lot more to be done.”
The BGMEA president also addressed the US association’s concern over the death of a union leader.
He said that they condemned it and sought proper investigation and speedy trial. The suspects are already arrested, and the law enforcement agencies have recorded the case with utmost priority.
“In our journey ahead, we have committed to putting utmost importance on sustainability, aligning with the SDG vision.”
He said they have now 202 LEED RMG factories in Bangladesh certified by the United States Green Building Council, of which 73 are platinum. “We are working with a clear sustainability vision to significantly decarbonize our industry and adopt circularity by 2030, which aligns with your priorities and complements your values as well.”
“While we made a significant progress in this area and continuing our efforts, we faced the pandemic of the century and its devastation, and now the ongoing geo-political conflicts and global inflation emerged as major threats.”
The unprecedented inflation, leading to contractionary policies by central banks in all developed countries, is affecting disposable income, spending and demand for products, he added.
As per the data from Otexa, US’s import from Bangladesh dropped by 19.82 per cent in dollar values and 29.03 per cent in square metre in January-July 2023.
“We understand the stress of managing supply chain at your end, we, the manufacturers, are also in a complete ‘nightmare situation’ to manage our capacities, supply chain, planning and forecasting,” the letter reads.
“Our government is working relentlessly to make business easier and efficient. The government has also waived the rule of mandatory fumigation for importing cotton from US.”
“At the same time, the rule regarding import of raw materials on FOC basis is relaxed from 4 to 6 months. Several mega infrastructure projects are completed and we are waiting to have the new terminal opened at Dhaka airport by the end of this month,” he said.
“More reforms and mega projects are underway. These will add more paces in our business in coming days. While having all these visions and aspirations, the reality is full of challenges. We are yet to recover from the loss caused by the pandemic, and we are investing so much to make the industry transparent and sustainable.”
“Now, inflation and production cost hike including gas, electricity, fuel, transport and other costs, is squeezing our breathing space. In fact the workers, who are the lifeline of this industry, are suffering the most from the inflation. We know that the price level has also gone a bit higher, but barely enough to cope up with the cost upsurge,” he said.
